Namibia does not represent a case of structural adjustment, that is, a kind of
economic reform in a situation of crisis with a high leverage of external actors (IMF,
World Bank). Rather, the agenda for economic reform is set by the government, and
addresses the problems of the high poverty and extreme inequality of a dualistic
economy which emanate from a mineral-based enclave economy and from a past
policy of racial segregation (apartheid), which restricted the benefits of education and
other social services to the privileged.
Government policy is aimed at promoting growth and employment and reducing
poverty and inequality. Key instruments for achieving these aims are high
expenditures on education, health, a universal pension system, and other social
services. Further to this, measures have been taken to create employment and to
redress inequities on the labour market. At the same time, the Namibian
Government follows a market-oriented and open economic policy, based on
acknowledgement of the fact that the problems of poverty and inequality can only be
overcome in the context of economic growth. The aims of the government include a
balanced budget, a conservative approach to foreign debt, and public sector reform.
However, progress in the achievement of these remains limited.